Boise State University’s Online Master of Business Administration (MBA) can be even more affordable for you with employer tuition reimbursement.
Since the program began in 2012, employer tuition reimbursement has been used as a way for companies to invest in your education and benefit from the advanced skills you acquire and develop as a student.
Today, tuition reimbursement helps the majority of Boise State Online MBA students pay for their education while they continue to work full time.
“We’re seeing about 60% to 65% of students using some form of tuition reimbursement, whether that’s from their employer or the military,” said Ally Daniels, director of Boise State’s Online MBA program. “One of the best things about our MBA program is that it is a flexible, part-time program for working professionals, so you can maximize annual tuition reimbursement benefits.”
Daniels encourages students to use this often-overlooked benefit. “Being a working professional, tuition reimbursement is a benefit left on the table if you don’t use it. It really is compensation you’re not tapping into.”
How does employer tuition reimbursement work?
The first step to getting employer tuition reimbursement is checking with your company to see if the benefit is offered.
“Many tuition reimbursement plans are going to be on an annual basis,” Daniels said. “The most typical amount is $5,250 per year, which pays almost two full classes.
“The IRS sets a maximum tax-free threshold [$5,250] where any amount over this is considered taxable income. If a company stays at or below this number, it is not taxable.”
With careful planning and enough time to spread out your education, you can use employer tuition reimbursement to pay for most of your degree.
“You have seven years to complete an Online MBA degree at Boise State,” Daniels said. “You can choose when you take classes. We have ample course offerings, so we have a lot of students who take what we call a tuition reimbursement max plan, where they try to take two or three classes a year.
“Maybe they get two paid for a year, and they pay for one class out of pocket a year. They can schedule their classes to maximize their reimbursement, spread their classes out and pay as little as possible out of pocket.
“A lot of programs will lock you into a completion plan or don’t have a lot of course offerings. You have to wait, and the courses don’t line up. We have advisors who will help students maximize their reimbursement. We have entire plans we can map out and do that for them.”
Several larger companies, including Idaho National Laboratory, Micron and Amazon, have direct partnerships for tuition reimbursement with Boise State.
“There are a couple of different ways employers do tuition reimbursement,” Daniels said. “The most common one is employers will require a student to pay for their classes upfront. They can either do that out of pocket, on a credit card or take out a student loan.
“The employer will typically reimburse after grades are final, so the students will send in a verification letter from Boise State with the grades, the classes and the cost. It’s almost like a receipt from the university. You submit that to your employer, then get the reimbursement directly.
“A lot of times the student will be out that first class or two; they’ll have to front the money. Then, when they get that reimbursement, they can float that as they continue on and use it for the next class.”
A win-win situation for MBA students and employers
“Tuition reimbursement is a huge advantage for both businesses and employees,” Daniels said.
“For employers, it is often used as a retention tool. There may be a ‘stay clause,’ which requires you to remain with your employer after graduation for a set amount of years. We encourage students to look into that first.
“Another benefit for employers is that they also get access to students working on their business projects that are relevant and real-time — especially in the Online MBA. You can have a student doing a work project while they’re in the MBA program. It’s relevant and directly applicable to the business.”
Even though one person may be earning an MBA, often the entire team or division feels the impact.
“We always talk about the ripple effect in our MBA programs,” Daniels said. “When you train somebody to be a better manager, a better leader, you’re not just having them make better business decisions and make more money for the company — you’re helping them to be a better supervisor, a better co-worker, a better communicator, and that ripples down the company. It’s a domino effect that starts through good leadership training and management training.”
Once you graduate from the Online MBA program, you have some peace of mind for the remainder of your career.
“The other thing with it that’s great is a degree goes with you, no matter where you are,” Daniels said. “It’s one of those things where you get it from your employer, but you take it with you and recession-proof your career, future-proof your career.”
Don’t be afraid to advocate for yourself
Daniels said that just because your company doesn’t offer employer tuition reimbursement doesn’t mean it isn’t willing to do so.
“Don’t be discouraged if there is no tuition reimbursement listed in a flat amount in the HR handbook,” she said. “I always encourage students to talk to their employers about creative ways they might be able to implement tuition reimbursement. If a company doesn’t have it yet, oftentimes they’re willing to do one-off experiences.
“In fact, I just had a student whose company didn’t have a tuition reimbursement plan. He went and talked to his supervisor, which led to talking to their president and the company decided to pay for the entire degree. He has a must-stay-for-two-years requirement. My mom always said, ‘The answer is always no unless you ask.’ If you don’t see information about your company’s policy, have a conversation.
“Especially if you’re starting a new role, or getting a promotion, it’s an opportune time to discuss your educational goals,” Daniels said. “See what you can negotiate. Be prepared to ask for support and justify it. Talk about how it will help the business and help the company.”
Overall, Daniels believes that employer tuition reimbursement helps make a huge difference in the ability of students to pay for their education.
“I talk to quite a few students who tell me the tuition reimbursement was the catalyst for them getting an MBA,” she said. “It’s such a differentiator. It’s a signal to leadership and management that you care, and you’re willing to put in that extra effort. Not everyone goes through that extra effort with an MBA.”
Learn more about the Online MBA
Earning an Online Master of Business Administration from Boise State University can open doors to new opportunities and a brighter future — and we’re here to support you every step of the way. Whether you’re exploring if an online degree is right for you or need help transferring credits, connecting with a student success coach is the perfect first step.
Ready to learn more? Attend one of our online information sessions or contact a student success coach today.